Philippines telecommunications

PLDT to invest nearly US$1bn in 2018

December 22nd 2017 | Philippines | Mobile | PLDT Inc

PLDT Inc plans to invest more than P50bn (US$989m) in 2018 to boost its mobile and fixed-line infrastructure, according to media reports on December 21st citing the company's president, Manuel Pangilinan. This will be the highest-ever capital expenditure by the Philippine telecoms operator.

The operator will reportedly source about P10bn of the total amount by divesting some of its assets. PLDT announced its investment plan amid talk of a third operator entering the Philippines' telecoms market. The country's president, Rodrigo Duterte, has encouraged Chinese players to venture into the telecoms market in order to end the duopoly enjoyed by local players—PLDT Inc and Globe Telecom Inc.

Earlier this month, China Telecommunications Corp was shortlisted by the Chinese government to consider entering the Philippines. The Chinese company is conducting a preliminary market study and would have to tie up with a local company.

The Philippine government has often criticised both PLDT and Globe for not making the investments needed to boost the network infrastructure in the Philippines, which has one of South-east Asia's lowest internet penetration rates. The Economist Intelligence Unit expects the number of mobile-phone subscribers in the country to rise by an average of 3% annually during 2017-21.